Free Repair is a common term in international trade after-sales service, referring to the seller providing repair services for product failures reported by the buyer at no charge (including labor and/or parts costs) during the warranty period or as agreed in the contract. It is commonly used in export contracts for durable goods such as machinery, electronic products, and components. Notes: 1) The scope of free repair should be clearly defined (whether shipping costs and on-site service fees are included); 2) It is usually linked to the Warranty Period, and the start date (e.g., shipment date, arrival date, or acceptance date) should be agreed upon; 3) It should be distinguished from 'Free Replacement,' which involves direct replacement rather than repair; 4) If damage is caused by improper use by the buyer, the seller may not be obligated to provide free repair; 5) The repair response time, repair method (return-to-factory repair or on-site repair), and liability allocation should be agreed upon. As opposed to 'Paid Repair,' free repair is a quality assurance commitment by the seller that helps enhance customer trust but requires precautions against abuse by the buyer.
📝 Examples
1. According to Article 5 of the contract, if the equipment experiences non-human-caused failures within 12 months after acceptance, we will provide free repair services, but the buyer shall bear the round-trip shipping costs. (Note: Clarifies the time limit, conditions, and shipping cost responsibility for free repair.)
2. The buyer reported abnormalities in three motors. After technical confirmation that they were manufacturing defects, we agreed to provide free repair and dispatched engineers for on-site handling at no charge. (Note: The seller fulfills the free repair obligation in actual business and distinguishes the cause of the failure.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
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